Netflix Raising Prices Once Again After Record Holiday
Per recent news reports, Netflix is preparing to hike its prices yet again in 2024. This news comes after the streamer had record-shattering success bringing in new subscribers during the year-end holiday season of 2023, with over 13 million new users joining in the final three months of the year. Shockingly, Netflix continued to score these huge wins even after decimating its user base by cracking down on password sharing and introducing ad-supported tiers in some regions.
Netflix Is Still Cheaper Than Cable
Since launching the ad-supported tier in 2022, Netflix has raised the price for its cheapest option up to $6.99 per month, with the most expensive premium plan starting at $22.99. By all accounts, these rates are still more cost-effective than the old-school cable method, though subscribers may soon face additional price increases. Of course, Netflix has made great efforts to curtail subscriber losses in recent weeks, with announcements of big library additions on the way.
Netflix Is Adding Live Content
The most significant announcement of this variety came just this week, as Netflix execs confirmed the streamer had entered into a $5 billion deal with WWE’s Raw, with plans to add the weekly wrestling event to the extensive streaming library. The wrestling niche holds a massive and loyal base of consumers, meaning Netflix likely can and will increase its price to account for the massive influx of new consumers sure to arrive shortly. Raw isn’t poised to join the Netflix catalog until early next year, though the streamer already has plans to ameliorate their library with a host of original content.
Netflix Original Content Keeps Winning Major Awards
Netflix’s original content has also been making the rounds at a host of Academy Awards in the last several years, with series’ such as Beef and films like Maestro taking home Emmy Awards and Oscar nominations, respectively. The streamer has also taken to inking years-long deals with auteur filmmakers like David Fincher, in order to bring an additional level of prestige to their original content. Netflix has been working tirelessly to provide a welcoming environment for new subscribers, especially if it means increasing prices to drive greater profits.
Netflix Keeps Raising Prices And Subscribers Keep Paying
If there is a noticeable outcry from Netflix subscribers regarding the upcoming price changes, the streamer will likely point to situations such as the 2023 WGA and SAG-AFTRA strikes as the cause. The streamer was a major holdout during the work stoppages, which raged from May to November, preventing other AMPTP entities from negotiating with union leaders. Despite the company’s anti-union behavior, fans seem to be flocking to Netflix, partially due to the sudden influx of foreign market films and series the company added during the strikes.
How High Will Rates Go?
While there’s no word yet on how high the Netflix price hikes will go, streaming fans can rest assured the rates will only increase as the streamer continues to pull record-breaking profits. Netflix analysts have predicted that the ad sales wrought by the new tiers will bring in significant revenue on top of their subscriber base, with the lowest-tier plan accounting for nearly 40 percent of subscribers after only two years.
Source: AP News
